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ITA 667/HYD/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 6075 (ITAT-HYDERABAD)
• Duration Of Justice: 10 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-03-2017
• Appeal Filed By: Assessee
• Bench Allotted: B
• Assessment Year: 2008-2009
• Appeal Filed On: 09-05-2016
• Court: TRIBUNAL
• Department Lawyers: K J RAO
• Assessee Lawyers: P MURALI MOHAN RAO
• Keywords: Revision of order; Depreciation
• Section: 143(3); 263

Judgement Text

THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B, HYDERABAD BEFORE SHRI D MANMOHAN, VICE PRESIDENT AND B. RAMAKOTAIAH, ACCOUNTANT MEMBER ITA NO. 667/HYD/2016 ASSESSMENT YEAR: 2008-09 M/S EDCO INDIA PVT, LTD., HYDERABAD PAN AAACE4487E VS. DY. COMMISSIONER OF INCOME TAX, CIRCLE-2(2) HYDERABAD (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI P. MURALI MOHAN RAO REVENUE BY : SHRI K.J RAO DATE OF HEARING : 01 - 03 - 201 7 DATE OF PRONOUNCEMENT : 10 - 03 - 2017 ORDER PER B. RAMAKOTAIAH, A.M: THIS IS AN ASSESSEE APPEAL AGAINST THE ORDER OF THE CIT(A)-5, HYDERABAD DATED 28-01-2016. 2. THIS APPEAL ARISES ON THE ORDER CONSEQUENT TO TH E ORDER U/S 263 OF THE IT ACT PASSED BY THE LD. CIT D IRECTING THE ASSESSING OFFICER TO DISALLOW THE DEPRECIATION ON PLANT AND MACHINERY TO AN EXTENT OF RS. 30,72,071/- THE A.O CONSEQUENT TO THE DIRECTIONS OF THE LD. CIT U/S 263 OF THE IT ACT HAS PASSED AN ORDER U/S 143(3) R.W.S 263 OF THE IT ACT ON 14-03-2014, WHICH WAS CONFIRMED BY THE LD. C IT(A) IN THE IMPUGNED APPEAL. 3. AT THE OUTSET THE LD. COUNSEL SUBMITTED THAT THE ASSESSEE HAS CONTESTED IN THE ORDER OF THE LD. CIT U/S 263 OF THE IT ACT AND ITAT VIDE ORDER IN ITA NO. 381/HY D/2013 2 ITA NO. 667/HYD/2016 M/S EDCO INDIA PVT LTD,. HYDERABAD. DATED 25-01-2017 HAS SET ASIDE THE ORDER U/S 263 OF THE IT ACT AND RESTORED THE ASSESSMENT ORDER U/S 143(3) OF THE IT ACT ORIGINALLY PASSED. CONSEQUENTLY, THE PRESENT PROCEEDINGS BECOME AB INITIO VOID. 4. THE LD. DR FAIRLY ADMITTED THAT THE ORDER U/S 26 3 OF THE IT ACT WAS SET ASIDE AND THESE PROCEEDINGS WERE CONSEQUENT TO THE ORDER U/S 263 OF THE IT ACT. 5. SINCE THE PROCEEDINGS OF THE LD. CIT INVOKING TH E JURISDICTION U/S 263 OF THE IT ACT HAS BEEN HELD TO BE BAD IN LAW, CONSEQUENT PROCEEDINGS ON THAT ORDER HAVE N O BASIS AT ALL. IN VIEW OF THAT ALLOWING ASSESSEE GROUNDS, WE SET ASIDE THE IMPUGNED ORDERS OF THE ASSESSING OFFICER AND LD. CIT(A). 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWE D. PRONOUNCED IN THE OPEN COURT ON 10 TH MARCH, 2017. SD/- SD/- (D. MANMOHAN) (B. RAMAKOTA IAH) VICE PRESIDENT ACCOUNTANT MEMB ER HYDERABAD, DATED: 10 TH MARCH, 2017 KRK 1) M/S EDCO INDIA PVT LTD C/O P MURALI & CO. CA 6-3-655/2/3, 1 ST FLOOR, SOMAJIGUDA, HYD-82. 2) DCIT, CIR-2(2) 3) CIT(A) -V, HYDERABAD 4) PCIT -5, HYDERABAD 5) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., H YDERABAD. 6) GUARD FILE